Does BCCI pay tax to the government for the IPL and exemption explained

Does BCCI pay tax to the government for the IPL and exemption explained

The Indian Premier League (IPL) is arguably the biggest franchise-based cricket league worldwide at the moment, know if the BCCI does or does not pay tax for the IPL

Ever since its first edition in 2008, the IPL has seen a gradual rise in the standards and the popularity.

Does BCCI pay tax to the government for the IPL and exemption reason explained

Owing to its success and popularity, IPL does indeed bring in a lot of revenue. In fact, the BCCI just recently even found sponsors for the Orange Cap and the Purple Cap.

Interestingly, IPL is free of any tax, which sparked a few issues. However, with the issue all cleared now, find out the reason behind it below.

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Reason behind why the IPL is tax-free

According to reports, back in 2021, the BCCI approached the Income Tax Appellate Tribunal (ITAT) following the three show-cause notices that the revenue department issued in 2016-17. The BCCI made the approach to explain why the tax exemption that they enjoy under Section 12 A of the Income Tax Act should not be revoked.

The bench eventually upheld the arguments of the BCCI and agreed on the decision that even though the BCCI makes money through IPL, the objective of promoting cricket is still present as the primary factor. Therefore, the decision to exempt the IPL’s income from tax came to being.

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Following the decision, the bench of judicial member Ravish Sood and vice president Pramod Kumar later spoke about it. They said that:

On the face of it, merely because a sports tournament is structured in such a manner so as to make it more popular, resulting in it in more paying sponsorships and greater mobilisation of resources, the basic character of the activity of popularising cricket is not lost.”

How has IPL helped Indian cricket in general

The IPL as an annual competition has helped Indian cricket in many ways, elevating the sport to the highest level. Thanks to the IPL, team India now has a deep bench filled with tons of talented players. The tournament has helped top performers like Jasprit Bumrah and Hardik Pandya ascend to Team India.

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Moreover, the competition has also helped young cricketers from across the country develop their careers. Besides the career opportunities that the sport generates, the IPL also has also brought in tons of commercial value. Along with all this comes in the entertainment factor that the IPL brings to fans everywhere.

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